Punishment Sought Over Excessive Entertainment Spending

TOKYO—Japan's securities market regulator said Thursday it had asked the Financial Services Agency to punish Deutsche Bank AG's investment-banking unit in Tokyo for excessive entertainment spending on pension-fund clients. It is the first time for the Securities and Exchange Surveillance Commission to call for a penalty on a securities firm for excessive entertainment spending.

Following the SESC recommendation, the FSA will determine a penalty such as issuing a business improvement order citing a violation of compliance...